By: Doug Rosen
As with the other pairs associated with the EUR this pair is also tanking. This pair continues to be bearish and will keep being bearish until something happens. The idea is to find an entry point to get in on this trade.
On the daily time frame price has extended itself way outside of the Bollinger band and it has also spaced itself a ways from the 5 ema and the stochastics is in the oversold zone so a pullback is imminent.
On the 4 hour time frame the lower Bollinger band is wide open and pointing down and price is riding the 5 ema downside. Stochastics is in the oversold zone and price is touching the lower Bollinger band so I would possibly expect a pullback to the 4 hour 5 ema.
The hourly time frame looks a lot like the 4 hour, lower Bollinger band wide open and pointing down and price is riding the 5 ema downward so just as I would watch for the price on the 4 hour time frame to pullback to the 5 ema, I would watch for price on the 1 hour to rise to the 13 ema then tank.
Price is currently below the daily S1 pivot point overlapped with the 21 ema, these are the types of entry's I like to watch for. Since the EUR is weak and the JPY today is stronger than the USD I would expect dramatic bearish action.